[Federal Register Volume 85, Number 138 (Friday, July 17, 2020)]
[Rules and Regulations]
[Pages 43436-43437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15401]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 582


Nicaragua Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is amending the Nicaragua Sanctions Regulations to 
incorporate the Nicaragua Human Rights and Anticorruption Act of 2018 
by updating the authority citation and the prohibited transactions and 
delegation sections. OFAC is also adding a general license authorizing 
certain United States government activities.

DATES: This rule is effective July 17, 2020.

FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for 
Licensing, tel.: 202-622-2480; Assistant Director for Regulatory 
Affairs, tel.: 202-622-4855; or Assistant Director for Sanctions 
Compliance & Evaluation, tel.: 202-622-2490.

SUPPLEMENTARY INFORMATION:

Electronic Availability

    This document and additional information concerning OFAC are 
available on OFAC's website (www.treasury.gov/ofac).

Background

    On September 4, 2019, OFAC issued the Nicaragua Sanctions 
Regulations, 31 CFR part 582 (84 FR 46440, September 4, 2019) (the 
``Regulations'') to implement Executive Order 13851 of November 27, 
2018 (``Blocking Property of Certain Persons Contributing to the 
Situation in Nicaragua'') (E.O. 13851). The regulations were published 
in abbreviated form for the purpose of providing immediate guidance to 
the public.
    On December 20, 2018, the President signed the Nicaragua Human 
Rights and Anticorruption Act of 2018 (Pub. L. 115-335; 50 U.S.C. 1701 
note) (NHRAA) into law. The NHRAA requires the President to impose 
targeted sanctions on certain persons, including those that he 
determines to be responsible for or complicit in, or responsible for 
ordering, controlling, or otherwise directing, or to have knowingly 
participated in, directly or indirectly, in or in relation to Nicaragua 
on or after April 18, 2018: (i) Significant acts of violence or conduct 
that constitutes a serious abuse or violation of human rights against 
persons associated with the protests in Nicaragua that began on April 
18, 2018; (ii) significant actions or policies that undermine 
democratic processes or institutions; (iii) acts of significant 
corruption by or on behalf of the Government of Nicaragua or a current 
or former official of the Government of Nicaragua; or (iv) the arrest 
or prosecution of a person primarily because of the person's legitimate 
exercise of freedom of speech, assembly, or the press.
    This rule amends the authority citation of the Regulations and the 
delegation section of the Regulations at Sec.  582.802 to add the 
delegation of certain functions with respect to the NHRAA. OFAC is also 
making certain technical edits to the authority citation of the 
Regulations to shorten citations to conform with Federal Register 
guidance.
    In subpart B of the Regulations, OFAC is expanding existing Sec.  
582.201, which relates to prohibited transactions, to specify that the 
prohibitions in that section include all transactions prohibited 
pursuant to E.O. 13851, or any further Executive orders issued pursuant 
to the national emergency declared in E.O. 13851, and any transactions 
prohibited pursuant to the

[[Page 43437]]

NHRAA. OFAC is also making a number of technical and conforming edits 
in Notes 1 and 2 to Sec.  582.201 related to this change.
    Finally, OFAC is incorporating a general license into subpart E 
that was previously posted only on OFAC's website. This general 
license, which is being added as new Sec.  582.509, authorizes the U.S. 
government to engage in certain activities related to Nicaragua.

Public Participation

    Because the Regulations involve a foreign affairs function, the 
provisions of Executive Order 12866 and the Administrative Procedure 
Act (5 U.S.C. 553) requiring notice of proposed rulemaking, opportunity 
for public participation, and delay in effective date, as well as the 
provisions of Executive Order 13771, are inapplicable. Because no 
notice of proposed rulemaking is required for this rule, the Regulatory 
Flexibility Act (5 U.S.C. 601-612) does not apply.

Paperwork Reduction Act

    The collections of information related to the Regulations are 
contained in 31 CFR part 501 (the ``Reporting, Procedures and Penalties 
Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507), those collections of information have been approved by 
the Office of Management and Budget under control number 1505-0164. An 
agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless the collection of 
information displays a valid control number.

List of Subjects in 31 CFR Part 582

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Nicaragua, Penalties, Reporting and recordkeeping requirements, 
Sanctions.

    For the reasons set forth in the preamble, the Department of the 
Treasury's Office of Foreign Assets Control amends 31 CFR part 582 as 
follows:

PART 582--NICARAGUA SANCTIONS REGULATIONS

0
1. The authority citation for part 582 is revised to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; 28 U.S.C. 2461 note; 50 U.S.C. 1705 note; 50 U.S.C. 1701 
note; E.O. 13851, 83 FR 61505, 3 CFR, 2018 Comp., p. 884.

Subpart B--Prohibitions

0
2. Revise Sec.  582.201 to read as follows:


Sec.  582.201  Prohibited transactions.

    All transactions prohibited pursuant to Executive Order 13851 of 
November 27, 2018 (E.O. 13851), or any further Executive orders issued 
pursuant to the national emergency declared in E.O. 13851, and any 
transactions prohibited pursuant to the Nicaragua Human Rights and 
Anticorruption Act of 2018 (Pub. L. 115-335; 50 U.S.C. 1701 note) 
(NHRAA), are also prohibited pursuant to this part.

    Note 1 to Sec.  582.201:  The names of persons designated 
pursuant to E.O. 13851, or listed in or designated or identified 
pursuant to any further Executive orders issued pursuant to the 
national emergency declared in E.O. 13851, whose property and 
interests in property therefore are blocked pursuant to this 
section, are published in the Federal Register and incorporated into 
OFAC's Specially Designated Nationals and Blocked Persons List (SDN 
List) using the following identifiers: For E.O. 13851: 
``[NICARAGUA]'' and for any further Executive orders issued pursuant 
to the national emergency declared in E.O. 13851: Using the 
identifier formulation ``[NICARAGUA-E.O. [E.O. number pursuant to 
which the person's property and interests in property are 
blocked]]''. The names of persons designated or identified pursuant 
to NHRAA will be incorporated into the SDN list with the identifier 
``[NICARAGUA-NHRAA]''. The SDN List is accessible through the 
following page on OFAC's website: www.treasury.gov/sdn. Additional 
information pertaining to the SDN List can be found in appendix A to 
this chapter. See Sec.  582.406 concerning entities that may not be 
listed on the SDN List but whose property and interests in property 
are nevertheless blocked pursuant to this section.


    Note 2 to Sec.  582.201:  The International Emergency Economic 
Powers Act (50 U.S.C. 1701-1706), in Section 203 (50 U.S.C. 1702), 
and the NHRAA, in section 5(d)(1), authorize the blocking of 
property and interests in property of a person during the pendency 
of an investigation. The names of persons whose property and 
interests in property are blocked pending investigation pursuant to 
this section also are published in the Federal Register and 
incorporated into the SDN List using the following identifiers: For 
E.O. 13851: ``[BPI-NICARAGUA]''; for any further Executive orders 
issued pursuant to the national emergency declared in E.O. 13851: 
Using the identifier formulation ``[BPI-NICARAGUA-E.O.[E.O. number 
pursuant to which the person's property and interests in property 
are blocked pending investigation]]''; for the NHRAA: ``[BPI-
NHRAA]''.


    Note 3 to Sec.  582.201:  Sections 501.806 and 501.807 of this 
chapter describe the procedures to be followed by persons seeking, 
respectively, the unblocking of funds that they believe were blocked 
due to mistaken identity, and administrative reconsideration of 
their status as persons whose property and interests in property are 
blocked pursuant to this section.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
3. Add Sec.  582.509 to read as follows:


Sec.  582.509  Official Business of the United States Government

    All transactions that are for the conduct of the official business 
of the United States Government by employees, grantees, or contractors 
thereof are authorized.

Subpart H--Procedures

0
4. Revise Sec.  582.802 to read as follows:


Sec.  582.802  Delegation of certain authorities by the Secretary of 
the Treasury.

    Any action that the Secretary of the Treasury is authorized to take 
pursuant to Executive Order 13851 of November 27, 2018, and any further 
Executive orders relating to the national emergency declared therein, 
and any action that the Secretary of the Treasury is authorized to take 
pursuant to Memorandum of May 24, 2019: Delegation of Functions and 
Authorities under the Nicaragua Human Rights and Anticorruption Act of 
2018, May 24, 2019 (published June 13, 2019), may be taken by the 
Director of OFAC or by any other person to whom the Secretary of the 
Treasury has delegated authority so to act.

    Dated: July 13, 2020.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2020-15401 Filed 7-16-20; 8:45 am]
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